Estate agents have, in recent years, found that they are expected to perform a policing/checking service on behalf of the Financial Intelligence Centre: this has up until now involved the verification of the identity and proof of address of all sellers and landlords as well as the reporting of any suspicious or unusual transactions and the reporting of any possible terrorist activity.
Sean McCauley, northern region director of Rawson Properties, has reminded all SA agents that they have now been given a further duty, known as cash threshold reporting.
'Cash threshold reporting provides a mechanism to monitor reported cash transactions so that potential proceeds of crime are identified and investigated.
'Any estate agent who receives R25 000 or more in cash from a client or pays out R25 000 or more in cash to a client must immediately report the particulars concerning the transaction to the Financial Intelligence centre' says McCauley.
Cash is defined as notes, coins or travellers cheques and excludes payment via cheque, bank transfers or electronic funds transfer.
The objective, he says, appears to be to keep track of 'hot money'. Traditionally money earned via illegal (possibly even terrorist) activities has found a safe, not easily traced, haven in property but that will now be more difficult.
From 1st of December all estate agencies and their branches are accountable institutions under the FICA act and will have to acquire separate secure login credentials from the Financial Intelligence Centre, to report these cash threshold transactions.
Estate agents are also by law now obliged to inform the Receiver of Revenue of any property sale by a non-resident (i.e. any person who is not a South African citizen). With the assistance of the conveyancer the agents have also to withhold 5 to 10% of the purchase price from the seller. This is used as security for the payment of the obligatory capital gains tax.
McCauley commented that the role of the estate agent is increasingly responsible.
'He is seen as a partner with FICA and SARS in ensuring good governance'
For further information contact Sean McCauley on 011 463 1092 or email sean@rawsonproperties.com.
